Yahoo Finance Is Deutsche Telekom (DTEGY) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Deutsche Telekom (DTEGY). DTEGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.81. This compares to its industry's average Forward P/E of 15.61. Over the last 12 months, DTEGY's Forward P/E has been as high as 14.24 and as low as 11.47, with a median of 12.87.
We also note that DTEGY holds a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY's PEG compares to its industry's average PEG of 1.24. DTEGY's PEG has been as high as 1.38 and as low as 0.66, with a median of 1.15, all within the past year.
We should also highlight that DTEGY has a P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.71. DTEGY's P/B has been as high as 1.04 and as low as 0.81, with a median of 0.93, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DTEGY has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.37.
Investors could also keep in mind Telefonica Brasil (VIV), an Diversified Communication Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Telefonica Brasil are currently trading at a forward earnings multiple of 13.19 and a PEG ratio of 1.65 compared to its industry's P/E and PEG ratios of 15.61 and 1.24, respectively.
Over the past year, VIV's P/E has been as high as 19.10, as low as 12.83, with a median of 15.61; its PEG ratio has been as high as 2.16, as low as 0.88, with a median of 1.15 during the same time period.
Telefonica Brasil also has a P/B ratio of 0.92 compared to its industry's price-to-book ratio of 1.71. Over the past year, its P/B ratio has been as high as 1.46, as low as 0.91, with a median of 1.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom and Telefonica Brasil are likely undervalued currently. And when considering the strength of its earnings outlook, DTEGY and VIV sticks out as one of the market's strongest value stocks.
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Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report
Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report
